Two-thirds of landlords planning to raise rents cite upcoming tax increases, according to a survey of National Residential Landlords Association (NRLA) members.
In the 2025 Autumn Budget, Chancellor Rachel Reeves announced income tax on rental earnings will rise by two percentage points from 2027, and the Office for Budget Responsibility (OBR) warned the change could mean higher rents for tenants.
That concern is echoed in new research by consultancy Pegasus Insight. Among landlords looking to increase rents over the next year, 65% cited the tax rise as a significant factor. What’s more, 68% said they were motivated by rising costs of property management more generally.
Landlords also expressed anxiety about the end of ‘no-fault’ evictions, which comes into force on 1st May 2026. The research found 91% were very or slightly concerned about court delays in processing possession cases.
The latest government data shows it currently takes over seven months to process and enforce possession cases under the system replacing Section 21 – the longest delay since the beginning of 2022.
Despite these pressures, around 61% of landlords said tenant demand remained strong. Yet, 25% said they had sold property over the past year, compared with just 5% who purchased new homes during the same period.
Of those selling property, more than a quarter (27%) did so while tenants were still living there.
Ben Beadle, chief executive of NRLA, said: ‘This research should be a wake-up call to the government. Hiking taxes on rented housing will lead to higher rents. It’s not exactly clear how this approach will address the cost-of-living crisis ministers now say is the government’s number one priority.
‘More broadly, with no-fault repossession due to end in just a matter of months, responsible landlords are seriously concerned about court backlogs.’
‘Ministers have pledged to ensure the justice system is ready to process cases where landlords have good reason,’ Beadle added. ‘However, as of yet, they have failed to explain what ready means.
‘Warm words mean nothing without a clear plan to ensure legitimate possession cases are processed and, if needed, enforced far quicker than at present.’
Image: Khay Edwards/UnSplash
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